VANCOUVER, BRITISH COLUMBIA--(Marketwire -
Feb. 2, 2010) - North American Gem Inc. (NAG) (TSX VENTURE:NAG) has
acquired the Granny Rose lease in Knox County, Kentucky which will be
immediately permitted for mining. This lease contains the highly profitable
Blue Gem coal throughout the entire lease with an average seem thickness of 2
feet. It has been estimated that approximately 250 acres of the planned permit
will be mined using surface mining techniques with an additional approximate
100 acres that is will be mined by highwall and/or auger mining methods.

The Granny Rose mining permit is
being prepared for submittal to the Kentucky Department of Natural Resources.
Mining costs are expected to be relatively low on this particular lease due to
a favorable strip ratios and mining conditions.

The decision of North American
Gem to acquire and develop this coal lease was made with consideration of the
situation regarding the "mountaintop removal" and "valley
fill" issues under scrutiny by the US Environmental Protection Agency. None
of the leases currently held or being considered by NAG will be affected by
this issue.

The method of mining to be used
is known as contour mining. All of the mining permits currently being pursued
by NAG have been mined prior to the enactment of the Surface Mine Control and
Reclamation act of 1977. This law requires that after any surface mining, the
land must be restored to the approximate original contour unless otherwise
specified in the permit application and approved by the Kentucky Department of
Natural Resources (KDNR). When "pre-law" mining was done, the general
practice was to mine along the contour of a slope to the maximum profitable
ratio and leave the resulting highwall and a wide, flat bench where the material
covering the coal was removed and then graded somewhat flat as opposed to
restoring the original slope. NAG will at the very least return the mining
permit locations to their current state, and in some instances return the
mining permit location to a better environmental state due to the Surface Mine
Control and Reclamation act of 1977.

All of NAG's potential mining
operations will incorporate sediment control methods that will keep ahead of
the increased regulations and restrictions. Furthermore, in anticipation of
increased regulations, NAG has, in all of its permitting applications, begun
the sampling of receiving streams and groundwater wells utilizing the most
stringent and extensive sampling parameters. This will allow NAG to comply with
the regulatory requirements and will also result in a much shorter and smoother
permitting application process.

Mr. Dean Schafer is acting as
operations manager of all the Company's Kentucky coal leases and is currently
implementing an overall mine plan.

Ms. Deborah Moses, PEng, PLS,
REM, of Engineering Consulting Services Inc. (ECSI) has approved the technical
content of this release. Ms. Deborah Moses is the qualified person for the
Company's coal operations in Kentucky and West Virginia.

North American Gem Inc. (TSX
VENTURE:NAG) is a Junior Exploration Company based in Western Canada. The
Company's primary goal is to explore for Coal in North America, currently the
focus is in Kentucky, Saskatchewan, and West Virginia. In addition to Coal
exploration, the Company also has interests in Uranium, Copper, Gold,
Molybdenum and other base metals in Canada.

On
Behalf of the Board of Directors

NORTH
AMERICAN GEM INC.

Charles
Desjardins, President and Director

Cautionary note:
This report contains forward looking statements. Resource
estimates, unless specifically noted, are considered speculative. Any and all
other resource or reserve estimates are historical in nature, and should not be
relied upon. The production rate and mine-life projections have been made
without support of a feasibility study, there is no certainty the proposed
operations will be economically viable. By their nature, forward looking
statements involve risk and uncertainties because they relate to events and
depend on factors that will or may occur in the future. Actual results may vary
depending upon exploration activities, industry production, commodity demand
and pricing, currency exchange rates, and, but not limited to, general economic
factors. Cautionary Note to US investors: The U.S. Securities and Exchange
Commission specifically prohibits the use of certain terms, such as
"reserves" unless such figures are based upon actual production or
formation tests and can be shown to be economically and legally producible
under existing economic and operating conditions.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."